385 

Su532s 


STATEMENT 


COSCFRxivi;    iiir. 


SULLIVAN    AND    ERIK 


PENNSYLVANIA, 


WITH   A   HAP  AND  DESCRIPTION  OF  ITS  MINES,  PROPERTY,  ROAD  AND 
COXXECTIONS  ;     ITS    WORK,    PROGRESS     AJfD     FUTURE     PROS- 
PECTS, AND  THE  8ECU1UTV  AM>  AVAILABILITY  OF  ITS 


FIRST     MORTGAGE     BONDS. 


NEW  YORK,  JANUARY,  1868. 


BOSTON: 
ALFRED   MUDOE   &  SON,   PRINTERS,   84   SCHOOL  STREET. 

1868. 


OFFICERS    AND    DIKECTOKS. 


M.   C.   MERCUR,    Towanda,  Penn. 
CHARLES   MERCUR,    Towanda,  Penn. 

©reaieitttfr, 

B.   S.  RUSSELL,    Towanda,  Penn. 

H.   A.   FRINK,    Towanda,  Penn. 

M.   C.   MERCUR,   Banker,  Towanda,  Penn. 

C.   F.   WELLS,   President  of  Penn.  &  JV.  T.  Canal  &  B.  B.  Co. 

The  Hon.  GEO.   D.   JACKSON,   Dushore,  Penn. 

M.   MEYLERT,   Laporte,  Penn. 

The  Hon.  ULYSSES  MERCUR,  M.  C,    Towanda,  Penn. 

J.    S.   ANDREWS. 

(iittattrial   gigfutisi, 

HENRY   CLEWS   &  CO.,   Bankers,  32   Wall  Street,  N.  Y., 

Company's  Office,  111  Broadway,  N.  Y. 


John  A.  Stewart,  President  United  States  Trust  Co.,  JV.  Y. 
McFarland  &  Thorne,  Leather  Merchants,  76  Oold  Street,  \.  Y 
Bank  ok  the  Metropolis,   Boston,  Mass. 
Townsend,  Whelen  &  Co.,  309   Wahiut  Street,  Phila.,  Penn. 
J.  S.  Potter,  Arlington,  Mass.     ^J^^'VERSfTY  OF 

ILLINOIS  LIBRARY 

AT  URBANA.  CHAMPAIGN 
BOOKSTACKS 


The  Sullivan  and  Erie  Coal  and  Railroad  Company 
was  incorporated  by  a  Special  Act  of  the  Legislature  of 
the  State  of  Pennsylvania,  approved  March  23d,  1 865  — 
a  copy  of  which  is  appended  to  this  Prospectus. 


ITS     FRANCHISES. 

The  rights  conferred  upon  the  Company  by  the  said 
charter  are  of  great  value,  and  may  be  briefly  enumerated 
as  follows : 

I.  The  power  and  right  to  purchase  and  hold  in  fee 
sim^jle,  or  by  lease,  real  estate  in  the  Counties  of  Sullivan 
and  Bradford,  in  the  State  of  Pennsylvania,  provided 
only  that  the  amount  of  land  held  in  fee  simple  shall 
not  exceed  six  thousand  acres. 

II.  The  exclusive  power  and  right  to  mine,  prepare, 
transport  to  mark(  t.  ;iiul  soil  the  coal  and  other  products 
of  their  lands. 

III.  The  exclusive  right  to  construct  and  operate  a 
jingle  or  double  track  railroad  from  the  coal  fields  of 
'^Sullivan  County,  via  Towanda,  to  any  point  on  the  Erie 
£l{ailway,  situate  and  lying  between  the  Chemung  and 

iSuscpiehanna  Rivers. 

^     1\.     Authority  to  connect  the  said  road,  if  desired, 
owith  any  canal  or  other  railroad  in  the  line  of  their  route, 
and  to  use,  with  consent,  as  a  part  of  its  line,  the  track 
Sjor  grade  of  any  other  railroad. 


V.  The  right  to  construct  branches  or  lateral  roads 
to  any  point  in  the  Counties  of  Bradford,  Sullivan  or 
Wyoming. 

VI.  Power  to  construct,  operate,  and  maintain  a 
telegraph  line  from  Laporte,  Sullivan  County,  via 
Dushore,  to  Towanda,  Bradford  County. 

VII.  The  right  to  borrow  money  to  an  amount  not 
exceeding  the  capital  stock,  and  issue  therefor  bonds  of 
the  Company,  with  seven  per  cent  interest,  secured  by  a 
mortgage  of  and  upon  the  road  and  property,  or  any  por- 
tion of  either. 

ITS  ORGANIZATION,   PROPERTY,   AND  VALUE. 

Under  this  charter  the  Company  organized  with  a 
capital  of  One  Million  Two  Hundred  Thousand  Dollars 
—  One  Million  of  which  has  been  paid  in  and  invested 
in  the  purchase  of  the  franchise,  together  with  five 
thousand  acres  of  developed  coal  land,  in  fee  simple,  situ- 
ated in  the  heart  of  the  Sullivan  County  Coal  Fields,  some 
six  miles  south  of  the  town  of  Dushore.  The  tract  of 
land  so  obtained  lies  in  a  semi-circular  body  on  a  spur 
of  the  Alleghany  Mountains,  and  is  thickly  covered  with 
a  remarkable  growth  of  timber  of  great  variety  and 
value,  and  the  heaviest  quality,  being  mainly  oak,  black 
and  white  birch,  hickorj ,  walnut,  maple,  hemlock,  pine, 
and  whitewood.  The  parties  owning  the  land  having 
discovered  large  outcroppings  of  coal  in  the  side  of  the 
mountains,  commenced  the  development  of  the  same 
under  the  supervision  of  able  and  experienced  geologists 


ail  I  ea^iuejis,  by  boring  and  otheissise  testiug  the 
extent  and  value  of  its  mineral  deposits  ;  the  result  of 
these  tests  established  the  fact  that  nnder  forty-five  hun- 
dred acres  of  the  property  now  owned  by  the  Company, 
and  some  seventy  miles  farther  north  and  west  than  any 
anthracite  coal  field  known,  lay  a  large,  valuable  and 
hitherto  undiscovered  bed  of  anthracite  coal  of  a  purity 
before  unknown  to  exist  in  this  country,  and  which  the 
openings,  subsequently  made,  revealed  the  upper  vein 
to  be  of  the  depth  of  twelve  feet.  These  openings  have 
since  been  slowly  but  steadily  worked,  and  the  coal 
taken  therefrom  subjected  to  careful  analysis  by  compe- 
tent chemists,  mineralogists  and  others,  and  submitted  to 
various  experiments  in  the  way  of  testing  its  heat-giving 
qualities,  its  purity,  freeness  from  clinker,  and  other 
obnoxious  substances. 

The  nature  and  character  of  the  coal  of  this  Company 
may  be  judged  of  from  the  analysis  of  Prof.  Brush,  who 
declares  that  the  coal  of  the  Sullivan  and  Erie  Company, 
while  semi-bituminous  in  its  outward  appearance,  is  really 
the  '■'^  purest  anthracite  coal  ever  minedin  this  country^  being 
entirely  free  from  sulphur  or  slate"  —  a  feature  of  incal- 
culable benefit  possessed  by  no  other  coal  yet  discovered  on 
the  American  Continent,  thus  rendering  it  available  in 
the  manufacture  of  steel,  iron,  etc.,  and  of  unequalled 
value  for  steam  and  heating  purposes,  taking  the 
place  of  peat  and  other  fuels  which  are  required  to  be 
free  from  sulphur,  and  which  have  been  and  are  con- 
stantly superseding  coal.  It  is  believed  that  it  will 
entirely  supersede  the  use  of  all  other  coals  now  used  in 
railroad  locomotives  as  soon  as  it  can  be  delivered  in  the 
markets  of  the  country,  and  be  generally  adopted  by  all 


railroads  that  can  possibly  obtain  it.  The  natural  advan- 
tages of  the  position  of  the  Company's  coal  field  are 
unsurpassed.  The  openings  are  all  made  in  the  side  of 
the  mountain,  and  the  mines  being  thus  reached  by 
drifts,  drain  themselves  (saving  the  vast  outlay  generally 
incurred  in  procuring  buildings,  shafting,  breakers, 
crushers,  rollers,  engines,  and  pumps),  while  the  cars 
can  be  filled  on  the  main  track  at  the  very  mouth  of  the 
mines,  and  much  additional  expense,  time  and  labor 
thus  saved. 

THE    ROAD. 

That  all  profits  in  the  way  of  freight  and  transporta- 
tion should  accrue  to  the  Company,  the  line  of  a  rail- 
road was  surveyed  and  laid  out,  and  the  same  is  now 
wholly  under  contract,  and  the  work  is  being  vigorously 
pushed  throughout  the  entire  line.  This  road  will  start 
at  the  mines,  and  run  direct  to  Towanda,  Bradford 
County,  a  distance  of  twenty-nine  miles,  connecting 
there  with  the  North  Branch  Canal  and  the  Pennsyl- 
vania and  New  York  Canal  and  Railroad  Company. 
which  connect  at  Waverly  with  the  Erie  Railway.  Ref- 
erence  to  the  accompanymg  map  will  correctly  exhibit 
these  and  the  more  remote  but  equally  valuable  railroad 
and  canal  connections  of  the  road  and  the  extensive  ter- 
ritory and  markets  which  they  open  to  the  products  of 
the  Company's  property. 

A  great  portion  of  the  grading  has  been  completed 
during  the  past  summer  and  fall,  the  ties  are  mostly  out 
and  delivered,  and  the  principal  portion  of  the  material 
for  bridges,  etc.,  on  the  ground,  and  it  is  the  determina- 
tion of  the  Company  to  complete  their  road  for  business 


early  the  coming  fall,  hi  \w\\  ol  this  tact,  the  Company 
have  erected  extensive  mills,  and  are  cntting  a  large 
quantity  of  various  kinds  of  lumber,  to  be  seasoned  and 
ready  for  shipment  on  the  completion  of  their  road, 
which,  in  connection  with  their  coal  business,  will  net 
the  Company  a  large  profit  the  first  year,  A  promi- 
nent feature  of  the  road  is  its  grade,  which,  from  the 
mines  down,  is  all  in  favor  of  trade,  enabling  the  Com- 
pany to  bring  to  market  large  trains  of  loaded  cars  with 
great  ease,  while  the  same  power  will  be  ample  to  return 
the  empty  cars.  The  road  runs  through  one  of  the  most 
beautiful  and  fertile  valleys  in  the  State,  and  it  is  believed 
will  do  a  paying  business  independent  of  the  illimitable 
and  profitable  freight  which  will  always  be  waiting  for  it 
in  the  coal  field's  of  the  Company. 

That  these  facts  are  entitled  to  careful  consideration, 
and  have  attracted  the  attention  of  capitalists  and  others, 
is  a  matter  of  no  surprise.  One  incident  alone  will 
serve  as  an  illustration.  During  the  past  summer, 
wealthy  and  prominent  citizens  of  Central  New  York, 
becoming  acquainted  with  the  enterprise,  have  visited 
the  Company's  property,  carefully  examined  its  manage- 
ment and  prospects,  and  become  so  profoundly  impressed 
with  its  real  merit  iis  to  organize  a  company  and  pur- 
chase the  right  of  way  for  a  road  from  Waverly,  the 
connection  of  the  Sullivan  and  Erie,  witli  the  New  York 
and  Erie,  across  the  State  of  New  York  to  a  connection 
with  the  Erie  Canal  and  the  New  York  Central  Railroad, 
at  Cayuga  and  Auburn,  thus  making  Central  New  York, 
and  all  points  north,  west  and  east,  a  large  and  near 
market  for  the  Company's  coal. 


THE  BONDS  OF  THE  COMPANY. 

For  carrying  to  completion  the  work  herein  con- 
templated and  set  forth,  the  Company  has  issued  One 
Million  Dollars  in  Bonds,  of  the  denomination  of  $500 
each,  having  twenty  years  to  run  from  November  1st, 
1866,  bearing  interest  at  the  rate  of  seven  per  cent  per 
annum,  payable  semi-annually  at  the  American  Exchange 
National  Bank  of  New  York.  To  secure  the  payment 
thereof,  the.  Company  has  executed  to  John  A.  Stewart, 
Esq.  President  of  the  New  York  Trust  Company,  as 
Trustee,  its  mortgage  (a  copy  of  which  is  hereto  ap- 
pended) on  the  entire  road  and  all  of  its  coal  property, 
stations,  buildings,  and  other  appurtenances,  and  its 
franchises.  And  as  further  security  has  created  and 
reserved  a  Sinking  Fund  for  the  payment  of  the  bonds 
of  ten  per  cent  of  the  annual  net  income  of  the  Com- 
pany, the  right  of  redemption  of  the  bonds  by  lot  at  one 
hundred  and  five  cents  on  the  dollar  being  reserved,  and 
the  privilege  given  the  holder  of  converting  the  principal 
sum  into  the  capital  stock  of  the  Company  at  par,  w  hich, 
by  those  who  are  familiar  with  the  prospects  of  the  Com- 
pany^ must  regard  as  a  very  favorable  feature  in  these 
securities. 

The  bonds  are  issued  only  as  the  work  progresses, 
and  represent  not  only  the  first  and  only  lien  upon  a 
completed,  equipped,  and  productive  railroad,  but  a  first 
lien,  also,  upon  an  extensive  developed  coal  property^ 
fully  paid  for^  the  value  of  which  alone  is  worth  more 
than  the  entire  bonded  debt  of  the  Company  at  the 
present  time  ;  and  on  the  completion  of  the  road  will  be 


worth  many  times  the  amount  of  the  bonds,  which  can 
be  issued.  The  completion  of  which,  and  putting 
everything  in  running  order,  is  fully  provided  for  in  the 
bonded  debt,  thereby  insuring  the  entire  net  earnings  to 
the  payment  of  the  interest  on  the  bonded  debt,  the 
sinking  fund  for  the  payment  of  the  bonds,  and  divi- 
dends on  the  capital  stock  of  the  Company. 

Extended  comment  upon  the  security  of  these  bonds, 
which  are  now  offered  for  sale,  is  believed  unnecessary, 
as  the  facts  herein  stated,  the  high  social  and  pecuniary 
standing  of  the  Directors  and  officers  of  the  road,  and  the 
rare  and  valuable  franchises  and  property  possessed  by  the 
Company,  and  mortgaged  as  security  for  the  payment  of 
the  bonds,  fully  warrant  the  statement  that  no  more  safe 
and  profitable  securities  for  investment  have  ever  been 
presented  than  those  now  offered  by  this  Company,  which 
must  soon  realize  rates  largely  in  advance  of  the  price 
at  which  they  are  now  offered. 


niARTER    OF   TflK   CO  >f  PA  NY. 

All    A</  fn  incorporate  the  >iuliivan  and  Erie  Coal  and  Railroad 

Company.  •*, 

Section  1.  Be  it  enacted,  by  the  Senate  and  House  of  Repre- 
sentatives of  the  Commonwealth  of  Pennsylvania,  in  General 
Assembly  met,  and  it  is  hereby  enacted  by  the  authority  of  the 
same,  That  M.  C.  Mercur,  C.  F.  Welles,  Jr.,  George  D.  Jackson, 
Michael  Meylert,  Ulysses  Mercur,  Jervis  Langdon  and  F.  L.  Page, 
their  associates,  successors,  and  assigns,  be,  and  they  hereby  are, 
constittited  a  Iwdy  politic  and  corporate  by  the  name,  style,  and 
title  of  the  Sullivan  and  Eric  Coal  and  Railroad  Company,  with 
all  the  rights,  pri\nleges,  and  franchises  incident  to  a  Corporation, 
with  power  to  purchase  and  hold  real  estate  in  fee  simple,  or  by 

2 


10 

lease,  in  the  counties  of  Sullivan  and  Bradford,  provided  that  the 
amount  of  land  they  shall  hold  in  fee  simple  shall  not  at  any  one 
time  exceed  six  thousand  acres 

Sect.  2.  The  said  Company  shall  have  the  right  to  mine,  pre- 
pare, transport  to  market,  and  sell  the  coal  and  other  products  of 
their  lands,  and  to  lease  or  sell  their  lands  and  the  minerals,  or  any 
portion  thereof. 

Sect.  3.  The  said  Company  shall  have  the  right  to  construct 
.'ind  operate  a  single  or  double  track  railroad  from  the  coal  fields  of 
Sullivan  County,  by  the  way  of  Towanda,  to  form  a  connection 
with  the  New  York  and  Erie  Railroad  between  the  Chemung  and 
Susquehanna  rivers,  with  authority  to  connect  with  any  canal  or 
other  railroad  in  the  line  of  their  route,  and  to  use  as  a  part  of 
their  line  the  track  or  grade  of  other  railroads,  provided  the  con- 
sent of  said  road  or  roads  is  first  obtained,  with  power  to  construct 
branches  or  lateral  roads  to  any  point  in  the  counties  of  Bradford, 
Sullivan,  or  Wyoming  ;  and  in  the  location,  construction,  and  man- 
agement of  said  railroad  and  branches,  said  Company  shall  have 
all  the  powers,  privileges,  and  immunities,  and  be  subject  to  all  the 
restrictions  of  an  act  entitled  "  An  Act  regulating  Railroad  Com- 
panies," approved  the  nineteenth  day  of  February,  Anno  Domini 
one  thousand  eight  hundred  and  forty-nine. 

Sect.  4.  The  capital  stock  of  said  Company  shall  consist  of  two 
thousand  shares,  of  one  hundred  dollars  each,  with  the  right  of  the 
Company  to  increase  their  capital  stock  from  time  to  time  to  such 
an  amount  as  in  their  opinion  may  be  necessary  to  carry  out  the 
true  intent  and  meaning  of  this  Act ;  and  the  said  Company  may 
borrow  money  to  an  amount  n6t  exceeding  their  capital  stock,  and 
issue  therefor,  from  time  to  time,  the  bonds  of  the  Company,  witii 
interest  not  exceeding  seven  per  centum  per  annum ;  and  for 
securing  the  payment  of  said  bonds,  with  interest,  execute  a  mort- 
gage or  mortgages  of  and  upon  their  road  and  property,  or  upon 
any  portion  of  either. 

Sect.  5.  The  aff'airs  of  said  Company  shall  be  managed  by  a 
Board  of  Managers,  to  consist  of  not  less  than  three,  or  more  than 
seven,  stockholders,  who  shall  elect  one  of  their  number  President, 
and  shall  have  power  to  make  and  establish  such  rules,  regulations, 
and  by-laws  as  they  may  deem  necessary  for  the  proper  and  efllcient 


11 

management  of  their  business,  witli  the  right  to  alter  and  amen<l 
the  same  IVom  time  to  time. 

Sect.  6.  The  said  Company  shall  have  power  to  consfruct, 
operate,  and  maintain  a  telegraph  line  from  Lajwrte,  Sullivan 
County,  by  the  way  of  Dushore  to  Towanda. 

Sect.  7.  The  stockholders  of  said  Company  shall  be  jointly 
and  severally  liable  in  their  individual  capacities  and  estates  for 
all  debt«  due  to  workmen  and  laborers  employed  by  them,  and  for 
supplies  furnished  said  Company,  to  .be  sued  for,  and  collected  as 
is  provide<l  by  the  twelfth,  thirtcentli,  and  fourteenth  section  of 
the  act  incor|X)rating  the  Lackawanna  Iron  and  Coal  Company, 
approved  April  fifth,  Anno  Domini  one  thousand  eight  hundred  and 
fifty-three,  provide<l  they  shall  not  be  individually  liable  for  any 
l>onded  debt  of  the  Company. 

Sect.  8.  The  said  Company  shall  pay  to  the  Treasurer  of  the 
Commonwealth  a  tax  of  one-half  of  one  per  centum  on  the  capital 
stock  thereof,  and  upon  all  increase  of  the  same,  payable  in  four 
equal  annual  instalments,  the  first  payment  to  be  made  within  one 
year  from  the  subscription  to  and  pa^'ment  of  said  stock. 

(Signed,)  A.  G.  OLMSTEAD, 

Speaker  of  the  House  of  Reps. 
(Signet!,)  WM.  J.  FUN  ELL, 

Speaker  of  the  Senate. 

Approved  the  twenty-third  day  of  March,  Anno  Domini  one 
thousand  eight  hundred  and  sixty-five. 

(Signed,)  A.  G.  CURTIN. 


MORTGAGE  OF  SULLIVAN  AND  ERIE  COAL  AND  RAILROAD  CO. 
TO  JOUN  A.  STEWART,  ESQ.,  TRUSTEE. 

This  Indenture,  made  the  first  day  of  NovemJ^er,  A.  D.  ooe 

thousand  eight  iiundrod  and  sixty-six,  between  the  "  Sullivan  and 
Erie  Coal  and  liailroml  Company  "  of  the  first  part,  and  John  A. 
Stewart,  of  New  York,  Trustee,  of  the  second  part ; 

Whereas^  Said  party  of  the  first  part  was  duly  incori>orated  by 
an  Act  of  the  Legislature  of  the  Commonwealth  of  Pennsylvania, 
approve<l  the  twenty-third  day  of  March,  A.  D.  one  thousand  eight 


12 

hundred  and  sixty-five,  entitled  "  An  Act  to  incorporate  the  Sulli- 
van and  Erie  Coal  and  Railroad  Company,"  wherein  it  was  pro- 
vided inter  alia  that  the  "  Capital  Stock  of  said  Company  shall 
consist  of  Two  Thousand  Shares  of  One  Hundred  Dollars  each, 
with  the  right  of  the  Company  to  increase  their  Capital  Stock  from 
time  to  time,  to  such  an  amount  as  in  their  opinion  might  be  neces- 
sary to  carry  out  the  true  intent  and  meaning  of  said  Act."  And 
it  was  also  provided  that  "•  sa'.d  Company  might  borrow  money  to 
an  amount  not  exceeding  their  Capital  Stock,  and  issue  therefor, 
from  time  to  time,  the  bonds  of  the  Company,  with  interest  not 
exceeding  seven  per  centum  per  annum  ;  and  for  the  securing  the 
payment  of  said  bonds,  with  the  interest,  execute  a  mortgage  or 
mortgages  of  and  upon  their  road  and  property,  or  upon  any  por- 
tion of  either." 

And  whereas,  In  pursuance  of  said  power,  said  Company  have 
increased  their  Capital  Stock  to  One  Million  Two  Hundred  Thousand 
Dollars,  and  have  issued  bonds  bearing  even  date  herewith,  which 
bonds  are  for  the  sum  of  Five  Hundred  Dollars  each,  and  are 
numbered  from  One  to  Two  Thousand,  inclusive  [amounting  in 
the  aggregate  to  One  Million  of  Dollars],  and  are  payable  on  the 
first  day  of  November,  A.  D.  one  thousand  eight  hundred  and 
eighty-six,  at  the  American  Exchange  National  Bank,  in  the  City 
of  New  York  ;  which  said  bonds  have  coupons  annexed  for  interest 
thereon  at  seven  per  centum  per  annum,  payable  at  the  said  Bank 
in  the  said  City  of  New  York,  on  the  first  days  of  May  and  Novem- 
ber in  each  and  every  year. 

Now  this  Indenture  witnesseth.  That  the  said  Sullivan  and  Erie 
Coal  and  Railroad  Company,  in  pursuance  of  the  powers  and 
authorities  aforesaid,  and  for  the  better  securing  the  payment  of 
the  said  bonds  and  the  interest  thereon  issued  as  aforesaid,  and  for 
and  in  consideration  of  the  sum  of  One  Dollar  to  them  in  hand 
paid  by  the  party  of  the  second  part,  the  receipt  whereof  is  hereby 
acknowledged,  have  granted,  bargained,  sold,  released  and  con- 
firmed, and  by  these  presents  do  grant,  bargain,  sell,  alien,  enfeoff, 
release,  convey  and  confirm  unto  the  said  John  A.  Stewart,  his 
successor  and  successors,  in  the  trusts  hereinafter  mentioned,  all 
that  certain  piece,  parcel,  or  tract  of  laud  lying  and  being  in  the 
Townships  of  Cherry  and  Colley,  iu  the  County  of  Sullivan  and 


Id 

SUte  of  Pennsylvania,  bounded  and  described  as  follows,  to  wit : 
Beginning  at  a  Hemlock  on  the  north  bank  of  the  Loyalsock  Ci-eek 
in  the  South  line  of  the  Henry  Epple  tract,  thence  along   said  line 
north  fifty-seven  and  one-hulf  degrees  west,  forty-one  perches  to  a 
post  corner;   thence   by  the   William  Van  Phal   warrant  south 
thirty-two    and    a    half   degrees    west,    eighty-two    perches,    to 
the  north  bank  of  said   Loyalsock    Creek   at   high-water  mark ; 
thence  down  the  Siune  at   high-wat«r  mark,  the  several   courses 
and    distances     thereof,     about    six     hundred     sixty    perches, 
to  a   hemlock   corner   on    line   between   the   William  Stein    and 
Joseph    P.    Norris   warrants;   thence  along  the  line  of  the  said 
Joseph  P.    Norris  warrant  north  thirty-two  and  a  half  degrees 
east,  seventy-nine  and  five-tenths  perches  to  a  dead  hemlock  corner ; 
thence  north  two  hundred  and  eighty-nine  and  four-tenths  perches 
to  a  post  corner  in  the  west  line  of  the  George  Roberts  warrant ; 
thence  along  the  line  of  the  Samuel  M.  Fox  warrant  north  thirty- 
two  and  one-fourth  degrees  east,  two  hundred  and  eleven  perches, 
to  a  post  conier ;  thence  south  fifty-eight  degrees  east,  two  hundred 
and   forty  perches,  to  a  fallen  birch ;    thence  north  thirty-two  and 
one-half  degrees  east,  two  hundred  and  twenty-four  perches  to  a 
post   comer;    thence   south   fifty-nine  degrees  east,  seventy-four 
perches  to  a  hemlock  comer ;  thence  south  fifty-seven  and  one-half 
degrees  east,  seventy-two  perches  to  a  birch  corner ;    thence  south 
fifty oeven  degrees  east,  two  hundred  and  fifty-five  perches  to  a 
beech  comer ;    thence  south  sixty  and  three-fourths  degrees  east, 
one  hundred  and  seven  i)erches  to  a   fallen   beech  corner ;    thence 
south  fifty-seven  and  one-half  dfegrees  east,  two  hundred  and  forty 
perches  to  a  post  corner ;    thence  north  three  degrees  east,  one 
hundred  and  eighty-four  perches  to  a  post  corner ;  thence  south  fifty- 
eight  and  one-hulf  degrees  east,   eighty-nine  perches   to   a  i>ost 
corner;    thence   north  thirty-two  and  one-half  degrees  east,  one 
hundred  and  fifty-nine  and  five-tenths  perches  to  a  post  comer ; 
thence  north  fifty-eight  degrees  west,  two  hundred  and  forty  i>er- 
ches  to  a  i>ost  corner ;  thence  north  thirty-two  and  one-half  degrees 
east,  two  ijerches  to  a  birch  corner  ;     thence   north  fifty -seven  and 
three-fourths  degrees  west,  one  hundred  and  forty -seven  perches  to 
a  i>ost  corner ;  thence  north  thirty-two  degrees  east,  twelve  i>erche8 


14 

to  a  post  corner ;  thence  north  fifty-seven  and  one-half  degrefes 
west,  thirty-six  and  seven-tenths  perches  to  a  beech  stump  ;  thence 
north  thirty-two  degrees  east,  one  hundred  and  five-tenths  perches 
to  a  hemlock  corner ;  thence  south  sixty  degrees  east,  thirty-seven 
and  eight-tenths  perches  to  a  post ;  thence  north  thirty-one  degrees 
east,  eighty-six  and  three-tenths  perches  to  a  beech  corner ;  thence 
south  fifty-eight  and  one-half  degrees  east,  one  hundred  and  forty- 
eight  perches  to  a  post  corner ;  thence  south  thirty-two  and  a  half 
degrees  west,  thirty-five  perches  to  a  post  comer ;  thence  south 
fifty-eight  and  one-half  degrees  east,  one  hnndred  and  fifty-six 
perches  to  a  post  corner ;  thence  south  thirty-two  degrees  west, 
sixty-seven  and  six-tenths  pcFches  to  a  corner ;  thence  south  fifty- 
eight  degrees  east,  two  hundred  and  forty-two  perches  to  a  corner ; 
thence  south  tliirty-two  and  one-half  degrees  west,  forty-seven  and 
four-tenths  perches  to  a  beech  corner ;  thence  south  two  and  one- 
half  degrees  west,  twenty-six  and  three-fourths  pesches  to  a  post 
corner ;  thence  south  eighty-seven  and  one-half  degrees  east,  one 
hundred  and  thii-ty  perches  to  a  post  corner  ;  thence  south  two  and 
one-half  degrees  west,  one  hundred  and  fifty-six  and  three-fourths 
perches  to  a  post  corner ;  thence  south  eighty-seven  and  one-half 
degrees  east,  three  hundred  and  twenty  aud  five-tenths  perches  to 
a  post  corner ;  thence  south  three  degrees  west,  one  hundred  and 
twenty-nine  perches  to  a  Maple  corner  in  the  line  of  the  bellas 
lands ;  thence  along  the  same  south  fifty-three  and  three-fourths 
degrees  west,  two  hundred  and  sixtj'-eight  porches  to  a  corner ; 
thence  north  eighty-seven  and  one-fourth  degrees  west,  two 
hundred  forty-six  and  five-tenths  perches  to  a  birch  corner  in 
line  of  John  Culbertson  warrant ;  thence  by  the  same  north  three 
degrees  east,  eighty-one  and  three-tenths  perches  to  a  beech 
corner ;  thence  along  the  north  line  of  said  Culbertson  warrant 
north  eighty-seven  and  one-fourth  degrees  west,  two  hundred  and 
thirty-six  perches  to  a  post  on  the  north  bank  of  the  Loyalsock 
Creek,  and  in  east  line  of  David  Zeigler  warrant ;  thence  down  the 
Loyalsock  Creek  at  high-water  mai-k,  the  several  courses  and 
distances  thereof,  about  six  hundred  and  twenty-eight  perches  to 
the  place  of  beginning,  containing  Jive  thousand  acres  of  land^  more 
or  less,  being  the  following-named  warrants  aud  parts  of  war- 


15 

rants,  viz. :  John  Raker  and  Andrew  Epple  and  parts  of  Philip 
Stein,  Georp^  Roberts.  Joseph  P.  Norris,  William  Stein,  Leonard 
Jnoohv,  Philip  Wager,  Henry  Epple,  Peter  I  leister,  David  Ziegler, 
SsmuK'l  Carpenter,  Heber  Chase,  Dudley  Chase,  Elipalet  Gillet, 
Thomas  Odion,  Richard  Tomlison,  Jacob  Ritzer,  Joseph  Tatem, 
Colinson  Reed,  Getting  Gover,  and  Christian  Getting,  and  l)e;ng 
all  the  coal  lands  of  said  party  of  the  first  part.  Also  all 
the  lands  of  the  said  party  of  the  first  part  now  or  here- 
after to  be  nsed  and  occupied  as  the  road  bed  of  said  Railroad 
fk-om  their  mines  in  said  County  of  Sullivan  to  the  present 
nortliern  terminus  thereof,  at  or  near  the  Borough  of  Monroe, 
in  the  County  of  Bradford.  Also  the  railroad^  and  all  the  lauds  of 
the  said  party  of  the  first  part  now  or  hereafter  to  l>e  occupied 
by  them  within  the  limits  aforesaid,  for  the  erection  of  depots,  con- 
structing sidings,  etc.,  and  all  the  corporate  franchises  of  said 
Company,  as  secured  by  the  charter  of  said  Company  inand  to  the 
same.  Tof/elher  with  all  and  singidar  the  buildings  and  improve- 
ments, rights,  liberties,  privileges,  hereditaments  and  appurtenan- 
ces to  the  same  belonging,  or  in  any  wise  appertaining,  with  rever- 
sions and  remainders,  rents,  issues  and  profits  thereof.  To  have 
and  to  hold  the  said  lands,  rights  and  franchises  hereby  granted 
unto  the  said  John  A.  Stewart,  his  successor  and  successors,  upon 
the  following  special  trusts,  and  to  and  for  the  following  uses  and 
purposes  —  that  is  to  say  :  In  Trout  to  and  for  the  use  of  the  per- 
sons, l>odies  politic  and  corporate,  who  are  or  may  be  the  holders  of 
said  bonds,  according  to  the  provisions  of  the  several  bonds  and  of 
said  Act  of  Assembly  incorporating  said  Company  :  but  subject  to 
the  exclusive  possession,  use,  occupancy  and  control  of  the  said 
Company  of  the  first  part,  until  the  said  bonds  shall  be  forfeited, 
and  until  by  the  provisions  and  stipulations  herein  contained,  the 
title  of  the  said  Company  shall  be  divested  :  And  the  said  Com 
pany  hereby  covenant  and  agree  to  make,  execute,  and  deliver  all 
such  further  conveyances  an<l  assurances  in  the  law  as  shall  be 
needful,  from  time  to  time,  for  carrying  into  effect  fully  and  entirely 
the  purpose  of  this  mortgage  in  securing  the  said  bondholders 
which  counsel  learned  in  the  law  may  devise  and  advise ;  it  being 
the  intent  :nul  purpose  of  these  pTesents  to  give   the  said  party  of 


16 

the  second  part  as  security  as  aforesaid  all  the  lands,  rights,  and 
franchises  hereinbefore  described  and  mentioned. 

This  indenture  farther  witnesseth^  that  if  default  shall  be  made  in 
the  payment  of  the  interest  or  of  the  principal  of  said  bonds  when 
and  at  the  time  the  same  shall  become  due,  according  to  the  true 
intent  and  meaning  of  said  bonds,  and  of  coupons  for  interest  there- 
to attached,  for  the  period  of  sixty  days  after  the  same  shall  become 
due  and  payable  as  aforesaid,  then  and  from  that  time  it  shall  and 
may  be  lawful,  and  it  is  hereby  made  the  duty  of  said  party  of  the 
second  part  and  his  successor  in  said  trusts,  to  proceed  at  once  to 
advertise  the  said  lands,  rights,  and  franchises,  for  sale  at  auction 
at  such  place  in  the  City  of  New  York  as  he  may  appoint,  giving 
at  least  six  months  notice  of  such  sale  in  at  least  three  weekly  papers 
of  said  city,  and  in  such  other  papers  as  the  Court  of  Common 
Pleas  of  said  County  of  Bradford,  upon  application  to  them  for 
that  purpose,  may  direct,  and  upon  such  notice  to  sell  all  the  said 
mortgaged  premises  and  property  to  the  highest  bidder,  and  upon 
such  sale  full,  perfect,  and  entire  conveyances  and  assurances  in 
law,  to  make,  execute,  and  deliver:  Provided  that  before  such 
advertising,  such  person  or  persons  who  are  the  bona  fide  holder 
or  holders  of  at  least  one-tenth  of  all  said  bonds,  and  to  whom 
interest  or  principal  is  due  and  unpaid  as  aforesaid,  shall  by  appli- 
cation in  writing  to  the  said  Trustee  or  his  successor  desire  such 
proceedings  to  be  had :  And  provided  further,  that  if  at  an}'  time 
before  the  sale,  the  said  Company  shall  pay  off  and  discharge 
the  amount  then  due  upon  said  bonds,  with  costs,  then  all  proceed- 
ings for  said  sale  shall  cease  and  determine,  but  upon  anj-  subse- 
quent failure  to  pay,  the  same  may  be.renewed  as  aforesaid.  This 
indenture  further  witnesseth,  that  the  said  Company  have,  and  do 
hereby  release,  all  equity  of  redemption  of  the  said  mortgaged  proi> 
erts  and  all  the  rights,  ben";fits,  and  privileges  secured  to  mortgag- 
ors by  any  laws  of  the  State  of  Pennsylvania,  in  and  to  said  mort- 
gaged property  and  estate,  and  do  constitute  and  appoint  the  said 
Trustee  and  his  successor  in  trust  their  true  and  lawful  Attorne}',  for 
them,  and  in  their  name,  place,  and  stead  to  sell  and  convey  the 
said  mortgaged  premises  and  property  to  the  purchasers  thereof  at 
public  sale,  as  aforesaid,  as  fully,  effectually,  and  with  like  effect, 


17 

as  the  said  Company  is  or  may  l>e  authorized  to  do  by  the  laws  of 
the  S:ate  of  Pennsylvania :  And  the  proceetls  of  said  sale  to  dis- 
tribute as  follows,  to  wit :  first  to  pay  all  the  expenses  and  coste  of 
said  sale,  including  such  compensation  to  the  Trustee  under  these 
presents  as  shall  l)e  just  and  proper ;  secondly,  to  pay  and  dis- 
charge the  said  bonds,  principal  and  interest ;  thirdly,  to  pay  the 
balance  or  overplus  to  the  said  Corporation.     In  case  of  the  death 
or  incapacity  of  the  sai<l  Trustee  to  act,  then  it  shall  and  may  be 
lawful  for  any  of  the  holder  or  holders  of  said  bonds,  or  of  the  Sulli- 
van and  Erie  Coal  and  Railroad  Company,  to  apply,  by  petition, 
to  the  Court  of  Common  Pleas  of  said  County  of  Bradford,  setting 
forth  the  necessary  facts,  and  thereni)on  it  shall  and  may  be  lawl\il 
for  said  Court,  if  so  prayed  for  and  required  in  and  by  said  peti- 
tion, upon  thirty  days  notice  given  in  the  manner  directed  by  said 
Court,  to  appoint  a  suitable  person  or  persons  as  Trustee  or  Trus- 
tees in  the  place  of  such  Trustee  so  deceased  or  incapable  of  acting 
as  aforesaid.     And  the  Trustee  or  Trustees  so  appointed  shall  have 
the  same  rights,  powers  and  immunities,  and  be  subject  to  the 
same  duties  and  liabilities  as  the  said  John  A.  Stewart,  or  his  suc- 
cessor, under  and  by  virtue  of  the  covenants,  agreements,  and  stipu- 
lations herein  contained ;  provided  that  the  Trustee  or  Trustees  so 
appointeil  by  said  Court  shall  give  such  security  for  the  faithful  dis- 
charge of  his  or  their  duties,  as  the  Court  shall  require.     And  the 
party  of  the  first  part  hereby  covenants  and  agrees,  by  and  with 
the  said  party  of  the  second  part,  that  the  said  party  of  the  first  part 
will  well  and  faithftilly  reserve  one-tenth  of  its  net  annual  earnings 
as  a  sinking  ftind  from  which  to  pay  the  principal  of  the  debt  hereby 
secured,  and  to  invest  the  said  one-tenth  of  its  earnings  in  the  bonds 
hereby  secured,  provided  always  that  such  bonds  can  be  purchased 
at  par  or  under.    But  and  if  the  said  bonds  cannot  be  so  purchased, 
then  and  in  that  case  it  is  mutually  covenanted  that  when  the 
accumulations  of  the  sai''.  sinking  Aind  shall  amount  to  twenty-five 
thousand  dollars,  the  party  of  the  first  part  shall  proceed  to  desig- 
nate by  lot  forty  bonds,  and  after  such  selection  and  designation, 
to  give  notice  to  the  holders  of  said  bonds,  by  advertisement,  twice 
a  week  for  sixty  days,  in«two  newspapers  published  in  the  Cities  of 
N^   York   artd  Philadelphia  respectively,  that  they  present  the 
8 


same  at  the  time  and  place  in  said  notice  mentioned,  for  payment 
at  five  per  cent  above  their  par  value,  and  that  interest  shall  cease 
to  grow  on  the  said  bonds  after  sixty  days  from  the  first  insertion 
of  such  notice.  And  the  party  of  the  first  part  further  covenants 
that  the  holder  of  any  bond  or  bonds  hereby  secured,  may,  at  any 
time,  convert  the  principal  sum  thereof  into  the  capital  stock  of 
the  Company  at  par,  on  surrendering  the  bond  with  the  coupons, 
not  then  due,  annexed.  Provided,  that  it  or  they  have  not  yet 
been  designated  for  redemption,  or  if  it  or  they  have  been  desig- 
nated, that  sixty  days  have  not  elapsed  sinoe  the  first  published 
notice  of  sut-h  designation.  It  is  further  stipulated  and  hereby 
agreed  that,  if  under  the  operation  of  the  said  sinking  fund, 
or  otherwise,  said  Company  of  the  first  part  shall  have  dis- 
charged or  taken  up  for  cancellation  one  hundred  thousand  dollars 
of  said  bonds,  the  Trustee  or  Trustees  shall,  upon  request  made  by 
said  Company,  enter  upon  the  Record  of  said  Mortgage  special 
satisfaction  of  said  amount,  and  so  on  from  time  to  time  whenever 
and  so  often  as  said  amount  shall  be  withdrawn  and  discharged  by 
said  Company.  In  witness  whereof^  the  said  parties  have  hereunto 
interchangeably  affixed  their  seals  (the  seal  of  said  party  of  the 
first  part  being  hereto  affixed  by  the  direction  of  the  President  and 
Managers  of  said  Company),  the  day  and  year  first  above  written. 
Sealed  and  delivered  in  presence  of  us : 
W.  T.  BISHOP,  Jr.,  (Signed) 

JOHN  W.  MIX.  MAHLON  C.  MERCUR, 

Pres.  Sullivan  and  Erie  Coal  and  R.  R.  Co. 


'■■  Seal  of  Sullivan  aiid  Krl*" 
:    Coal  and  llallroad  Co. 


Attest. 

CHARLES  MERCUR, 

Secretary. 


$aoo  u.  s. 

Krv.  stamp. 
Cancelled. 


♦200  U.  S. 
Rev.  Stamp, 
CancelU'd. 


♦200  U.  S. 
Rev.  Stamp. 
'   Cancelled. 


$200  U.  8. 
Rev.  Stomp. 
:    Cancelled. 


$200  U.  S. 

Rev.  Stamp. 

Cancelled. 


19 

State  of  Pennstlvaxia,  ) 
Bradford  County.     )  **' 

Bsfoi-e  me,  the  subscriber,  a  Notary  Public  in  and  for  the  State 

and  County  aforesaid,  on  the  Erst  day  of  November,  A.  D.  1866, 

personally  appeared  Mahlon  C.  Mercur,  President  of  the  Sullivan 

and  Erie  Coal  and  Railroad  Company,  and  acknowledged  that  he, 

as  President  of  said  Company,  signed,  executed  and  delivered  the 

foregoing  Indenture  of  Mortgage,  and  affixed  the  corporate  seal  of 

said  Company  thereto  aa  the  act  and  deed  of  said  Corporation, 

and  that  said  seal,  so  affixed,  is  the  proper  corporate  seal  of  said 

Sullivan  and  Erie  Coal  and  Railroad  Company,  and  duly  attested 

by  the  Secretary  of  said  Corporation.      "Witness  my  hand  and 

notarial  seal,  the  day  and  3'ear  above  written. 

(Signed)  JOHN  W.   MIX, 

Notary  Public. 


The  foregoing  is  a  correct  copy  of  a  deed  of  trust  executed  by 
the  Sullivan  and  Erie  Coal  and  Railroad  Company,  in  my  posses- 
sion. 

JOHN  A.   STEWART, 

New  York,  March  9,  1867.  Trustee. 


The  following  letters  from  M.  C.  Mercur,  President 
of  the  Road,  Messrs.  Jay  Cooke  &  Co.,  and  John  A. 
Stewart,  Esq.,  addressed  to  gentlemen  in  New  York  and 
Boston,  in  reply  to  inquiries  made  concerning  the  status 
of  the  Company  and  its  bonds,  are  inserted,  as  they  con- 
tain some  statements  of  facts  which  may  not  be  found 
elsewhere : 

LETTER  OF  M.  C.    MERCUR,  PRESIDENT  SULLIVAN  AND  ERIE 
C.  AND  R.R.  COMPANY. 

J.  S.  PoTTKR,  Arlington,  Mass.  : 

Dear  Sir,  —  In  relation  to  our  Railroad  and  Coal  property,  we 
arc  organized  with  a  capital  of  $1,200,000,  of  which  one  million  is 


20 

paid  in  and  has  been  expended  in  the  purchase  of  five  thousand 
acres  of  valuable  coal  land,  heavily  covered  with  valuable  timber, 
on  which  we  are  now  working  a  twelve  foot  vein  of  a  superior  qual- 
ity of  soft  anthracite  coal.  We  are  constructing  a  railroad  from 
the  mines  to  connect  with  the  railroads  and  canal  at  this  place. 
During  the  past  summer  and  Fall  a  large  force  has  been  at  work 
upon  the  road  and  a  great  portion  of  the  work  is  now  graded.  The 
most  of  the  cross-ties  and  the  greater  proportion  of  the  material 
for  bridging,  etc.,  are  on  the  line  of  the  road,  and  we  expect  to 
have  the  road  finished  and  ready  for  the  Fall  trade  of  1868.  In 
view  of  this,  we  are  now  manufacturing  on  our  lands,  to  have  sea- 
soned and  ready  for  market  at  that  time,  a  large  quantity  of  birch, 
maple,  cherry,  beech  and  ash  lumber,  which  in  itself  will  give  a 
profitable  tonnage  to  our  road  and  yield  the  Company  a  heavy 
profit.  And  we  believe,  aside  from  the  lumber  trade,  that  the 
annual  profit  from  our  coal,  increasing  as  it  must  from  year  to  year, 
will  soon  make  our  Company  one  of  the  best  paying  and  most  suc- 
ces9f|^  coal  and  railroad  Companies  in  the  State.  Upon  our  coal 
lands,  railroad  franchises,  depot  grounds,  etc.,  we  have  placed  a 
mortgage  of  one  million  dollars,  and  issued  bonds  therefor.  We 
are,  however,  only  using  such  portion  of  the  bonds  as  are 
required  in  building  our  road,  developing  the  property,  etc.  This 
bonded  debt  is  the  only  lien  upon  our  property,  road  and  fran- 
chises. Our  title  to  the  land  is  perfect  and  free  from  all  and  every 
incumbrance,  except  the  above-named  mortgage.  Mr.  Phelps, 
the  Attorney  of  John  A.  Stewart,  Esq.,  the  Trustee,  pronounces  it 
perfect.  I  consider  the  value  of  the  lands  and  property  of  the  Com- 
pany at  this  time  fully  equal  to  the  amount  of  the  bonded  debt,  and 
at  the  completion  of  our  road  our  lauds  alone  will  be  worth  many 
times  that  amount?  Mining  as  we  do  from  drifts,  the  mines  drain 
themselves,  and  we  are  saved  the  heavy  expense  of  pumping  that 
nearly  all  other  anthracite  coal  mines  in  the  State  are  subject  to. 
Added  to  this,  the  purity  of  our  coal  and  the  thickness  of  the  vein 
enable  us  to  mine  and  load  in  cars  at  about  one-half  the  usual  cost 
of  mining  coal  in  this  State,  and  as  our  coal  can  be  placed  in  the 
interior  of  the  State  of  New  York  at  least  one  dollar  less  per  ton 
than  any  other  anthracite  coal,  we  believe  that  at  the  same  price 


21 

we  can  take  the  market.  I  consider  our  bonds  inferior  to  none 
placed  in  the  market,  the  eonpons  being  payable  in  New  York 
City,  and  at  the  option  of  the  holder  convertible  into  our  stock 
—  and  I  believe  that  a  careftil  examination  will  satisl^'  any  expe- 
rienced coal  man  that  the  intrinsic  value  of  our  stock  is  above  that 
of  either  the  Pennsylvania  Coal,  the  Delaware  &  Hudson  Canal  and 
Coal  Company,  or  the  Delaware,  Lackawanna  and  Western  Rail- 
road and  Coal  Company. 

In  relation  to  the  prompt  and  regular  payment  of  the  interest 
and  the  bonds  at  maturity,  the  bondholder  has  not  only  the 
security  of  the  entire  property,  railroad  and  franchises,  but  the 
strong  personal  interests  of  the  officers  and  stockholders  to  make 
it  largely  remunerative  to  those  who  invest  in  them. 
Yours  respectfully, 

M.  C.  MERCUR,  President. 


STATEMENT  OF  JAY  COOKE  &  CO.  • 

Jay  Cooke  &  Co.,  Bankers, 
114  South  Tiiikd  Strkbt,  Phil.,  April  4,  1867. 


} 


Dear  Sir,  —  We  are  personally  acquainted  with  Mr.  M.  C. 
Mercur,  and  know  him  to  be  a  gentleman  thoroughly  relillble  in 
every  particular. 

Yours,  ve.y  truly, 

JAY  COOKE   &  CO. 


LETTER  OF  JOHN  A.  STEWART,  ESQ..  TRUSTEE. 

UNtTED  Statbs  Tkdst  Co.  ov  Nkw  York,  > 

No.  48  Wall,  Cob.  William  Street,  April  8,  1867.  ) 

Dear  5»r,  —  In  reply  to  yours  of  8d  inst.,  requesting  information 
in  regard  to  the  bonds  of  the  Sullivan  &  Erie  Coal  and  Railroad 
Company,  1  would  state  that  at  the  request  of  Messrs.  Andrews 
and  Mercur,  I  made  a  personal  examination  of  the  mortgaged 
proi>crty  last  January,  and  that  in  my  judgment  they  have  a  very 


22 

valuable  coal  property,  and  such  as  to  warrant  the  building  of  the 
road ;  that  the  principal  parties  interested,  Messrs.  Mercur  & 
Wells,  are  wealthy  and  energetic  men,  quite  familiar  with  the 
management  of  coal  interests.  The  contractor,  Mr.  J.  S.  Andrews, 
appears  to  be  honest,  energetic  and  capable,  and  has  impressed  me 
favorably. 

I  have  no  interest  in  the  bonds,  other  than  as  Trustee,  and 
should  deem  them  a  safe  investment  at  eighty  cents  on  the  dollar. 
1  would  suggest  the  propriety  of  j'our  visiting  the  mines. 
Very  respectfully  yours, 

JOHN   A.   STEWART. 


CERTIFICATE  OF  TITLE  OF  PROPERTY"  OF  THE  COMPANY. 

The  following  certificates  of  the  Hon.  Ulysses  Mercur,  M.  C, 
and  Wm.  W.  Phelps,  Esq.,  as  to  the  title  of  the  Company's  prop- 
erty, fully  explain  themselves : 

TowANDA,  Pa.,  July  24,  1867. 

I  hereby  certify  that  I  have  examined  the  title  to  the  five  thou- 
sand acres  of  land  described  in  the  mortgage  executed  by  the  Sul- 
livan ^&  Erie  Railroad  Company,  to  John  A.  Stewart,  Trustee, 
bearing  date  the  first  da}'^  of  November,  1866,  and  given  to  secure 
the  payment  of  the  bonds  therein  recited,  and  find  that  said  Com- 
pany, at  the  date  of  said  mortgage,  had  a  good  and  unincumbered 
title  in  fee  simple  to  said  lands,  so  that  the  aforesaid  mortgage  is 

the  first  lien  upon  them. 

ULYSSES  MERCUR. 

I  have  examined  the  Company's  title  to  the  premises  referred  to 

and  approve  of  the  same. 

WM.  WALTER  PHELPS, 

26  Exchange  Place,  N.  Y. 


23 


ANALYSIS. 

The  following  is  the  analysis  of  Professor  Brush,  of 
Yale  College,  referred  to  within : 

Carbon 89.29 

Volatile  matter  (chiefly  water)           .        .  5.06 

Ash 5.65 

100.00 


* 


UNIVERSITY  OF  ILLINOISURBANA 


HHi  JO 

Aaviian 


